1. Field of the Invention
The present invention generally relates to processing payments, and more particularly, to methods, systems, and computer program products for processing payments using proxy cards.
2. Related Art
Payment modes, such as credit cards, debit cards, bank accounts, pre-paid gift cards, health savings accounts, loyalty rewards accounts, redemption coupons, and the like are used for conducting transactions. Consumers often carry two or more cards or a combination of cards and a payment device such as a fob.
For a variety of reasons, different cards may be used depending on the type of transaction. For example, a merchant may not accept a particular payment mode. Or, the consumer may wish to use various payment modes to take advantage of the unique benefits associated with each. A loyalty gas card may offer a good deal or generous points for gas purchases. A flight card may provide benefits in the form of accumulating air miles. As a result, a consumer may carry one or more credit cards for common use and one or more store-specific or brand-specific transaction cards for use in specific transactions where they provide more attractive offers/discounts.
Managing, as well as simply carrying, a large number of payment modes can be cumbersome. Discounts and offers and their associated several payment modes need to be tracked and several receipts may need to be signed.
Moreover, the more payment modes a consumer carries, the higher the risk of losing one of them. A lost card or fob might not be detected immediately, giving time to someone else to misuse the card before it is reported missing.
On the other hand, a consumer who conserves wallet space by carrying fewer payment modes often finds that on various occasions the most desirable payment mode for effecting a particular transaction is not available when needed. In addition, it may be the case that a merchant does not accept the payment mode most commonly used by the consumer.
It would be useful to process transactions using a single card, device or a single account number which enables the use of one or more payment modes available to the consumer, with no changes required in the existing point of sale (POS) infrastructure.